Exam 5: Measuring a Nations Income

What is NOT included in GDP?

How is a country's wealth related to other measures of well-being such as life expectancy and literacy?

If nominal GDP is $1 trillion and real GDP is $0.9 trillion, what is the GDP deflator?

The basic tools of supply and demand analysis are as central to macroeconomic analysis as they are to microeconomic analysis.

What prices are used to compute real GDP?

What does the simple circular-flow diagram illustrate?

Roommates Grace and Kelly are sharing household chores and think they have an even exchange. If instead they paid each other for the chores the other did, what would happen to GDP?

Which statement best describes the evolution of the Canadian economy over the past decades?

If a province with legalized gambling made gambling illegal, then, other things the same, what would happen to GDP?

If a province made an illegal activity such as gambling or prostitution legal, then, other things the same, what would happen to GDP?

Which of the following best defines a transfer payment?

What government level(s) will be considered when computing government purchases for GDP accounting purposes?

-Refer to the Table 5-4. Using the GDP deflator to measure the average level of prices and using 2013 as the base year, what is the economy's inflation rate?

An economy produces only eggs and ham. Last year, it produced 100 units of eggs at $3 each and 50 units of ham at $4 each. If in the base year eggs sold for $1.50 per unit and ham sold for $5 per unit, what can we conclude?

How is disposable personal income best defined?

During a federal election campaign, the incumbent argues that he should be re-elected because GDP grew by 12 percent during his four-year term in office. You know that population grew by 4 percent over the period, and that the GDP deflator increased by 6 percent during the past four years. What can you conclude about real GDP per person?

Which of the following is included in Canadian GDP?

Suppose that over the past 25 years a country's nominal GDP grew to three times its former size. In the meantime, population grew 50 percent and prices rose 100 percent. What happened to real GDP per person?

What is included in GDP?

After the terrorist attacks on September 11, 2001, governments raised expenditures to increase security at airports. How are these purchases of goods and services treated in GDP?